Transcript Washington Grown F/V Snack Successes

A School’s Guide to Purchasing
Washington-grown Food
A CPPW Project made possible by funding from
the Dept. of Health and Human Services and Public Health-Seattle & King County
Objectives and Key Topics
OBJECTIVES
•Describe the major federal, state and local school district requirements
that impact purchasing Washington-grown foods.
•Discuss how to develop an informal and formal procurement request
for purchasing local produce
KEY TOPICS
• Geographic Preference Option
• Local Farms-Healthy Kids Act
• General Procurement Requirements
• Small Purchase Thresholds at federal and state level
• Elements and ideas for procurement requests that preference locally
and regionally-grown foods
Buying WA Grown Food
Sorting out the rules
• Geographic Preference Option
• Requirements for Competitive Procurement
• Small Purchase Thresholds
Geographic Preference Option
RULE 1: School districts must define “local”
and may do so according to their preference
Geographic Preference Option
RULE 2: Geographic preference is limited
to “minimally processed” food.
Cooling; refrigerating; freezing; size adjustment made by peeling,
slicing, dicing, cutting, chopping, shucking, and grinding; forming
ground products into patties without any additives or fillers;
drying/dehydration; washing; packaging (such as placing eggs in
cartons), vacuum packing and bagging (such as placing vegetables
in bags or combining two or more types of vegetables or fruits in a
single package); addition of ascorbic acid or other preservatives to
prevent oxidation of produce; butchering livestock and poultry;
cleaning of fish; and the pasteurization of milk.
Geographic Preference Option
RULE 3: Local food cannot be “required” in
a procurement request, only “preferred.”
You may provide a “defined advantage in the
procurement process.”
RULE 4: Geographic preference can be
applied to the origin of the product, not the
location of the vendor.
USDA regulations on geographic preference
Local
As defined
by the
School
District
Minimally
processed
Frozen
Sliced
Washed
Packaged
Dried
Pasteurized
Products
NOT
NOT
Cooked
Heated
Pickled
Canned
People Vendors
Farmers
Producers
What about
Washington State Law?
Geographic Preference Option
RULE 1: School districts must define “local”
and may do so according to their preference
WA Law: Exemption for
Washington-Grown Food
State or Federal Law?
• Federal rules on bidding in child nutrition programs are
defined in the Uniform Administrative Code (Common
Rule).
• State laws apply to food purchases, as long as they fit
the Common Rule requirements, UNLESS states exempt
schools from their purchasing laws.
• Since the 2008 Local Farms-Healthy Kids Act,
Washington State law provides an exemption from the
state procurement requirements when schools purchase
Washington-grown food.
• For WA-grown food, federal rules apply. For all other
food, state rules apply.
Washington School Procurement Law
$75,000 or more
Food and
other
purchases
$40,000 $75,000
Less than
$40,000
Formal
?
Informal
No
competition
required
Small Purchase Threshold
• A competitive process is required for all school food
purchases using federal dollars.
• Without a geographic preference or with a preference
area beyond Washington State, the state threshold
applies and a formal procurement is required for
purchases of $75,000 or more.
• For purchases of Washington-grown food, the formal bid
threshold is $150,000, rather than $75,000.
• Any school district may set its own small purchase
threshold that is lower than USDA’s $150,000 threshold
or the state $75,000 threshold, but cannot establish a
threshold that is higher.
Are you applying a geographic preference for
Washington grown food? (WGF)
$150,000 or more
Formal
Yes, WGF
Less than
$150,000
$75,000 or more
No, not
WGF
Less than
$75,000
Informal
Formal
Informal
How do we apply a
geographic preference?
Simple Point/Price System
(USDA)
A set number of points can be applied for providing products
from within the geographic preference area
The points are equated to monetary amounts for a price
preference.
The monetary amount is then deducted from the bid or quote
amount, for comparison purposes.
Note: The deduction only applies to determining the winning
vendor and would not affect the actual price paid to the vendor.
1 Point = 1 Penny Example
Example: 10 preference points will be given to vendors who provide locally raised
and grown agricultural products. 1 point would equal 1 cent. Solicitation requires
each vendor to: 1) determine if geographic preference applies; and 2) if so, deduct 10
cents from its bid price before submitting bid. The district receives three vendor
responses, and verifies that the geographic preference was applied correctly by the
vendors. The three prices are then compared, as follows:
Vendor A
Vendor B
Vendor C
Price offered
$1.97
$2.10
$2.03
Meets Geographic Preference?
No
Yes (10 points)
No
Price with Preference Points
$1.97
$2.00
$2.03
Result: Vendor A is awarded the contract, even though they are not able to provide local
products. Even with preference points, Vendor B was not able to compete on price.
Percent Price Preference
A price preference of a specific percentage is applied to
those bids that meet your geographic preference.
Set a point threshold such that any vendor who receives a
certain number of points will receive a percentage price
preference on their bid.
Prices will be compared after that percentage reduction,
and contract will be awarded to the lowest price.
Note that the actual price they quoted will be paid; the percentage reduction is
simply a way of allowing for a higher price if your geographic preference is met.
Percent Price Preference
Example
Point Systems
Use a point system for specifications and for preferences.
Points will be awarded for specifications, with a certain
number awarded to the vendor with the lowest price bid.
Points will be awarded for geographic preference based on
your adapted version of the Geographic Preference Point
Chart.
Combined points will then determine which vendor is
awarded the contract.
Point System Example
Vendor A
Vendor B
Vendor C
Price offered
$32,000
150 pts.
$33,000
100 pts
40,000
0 pts.
Points for items w/in 1st tier
area (x% of 100% x 2)
30 x 2 = 60
50 x 2 = 100
80 x 2 =160
Points for items w/in 2nd tier
area (x% of 100% x 1)
20
10
20
Points for acceptable
substitutes (x% of 100%)
10
15
15
Total Preference points
90
125
195
Total Points, including those
for price
240
225
195
NOTE: Could have other
points for specifications
Sliding Scale under a Point
System Example
General requirements
20
Staff qualifications
Proposer references
Technical requirements
30
Product categories
Deliveries
Safety and sanitation
Cost
45
Local, minimallyprocessed products
up to 5
Total cost of products that
are local
5 pts = 75% and more of the
total cost is local products
3 pts = less than 75% and
more than 50% of the total cost
is local products
1 pt = less than 50% and more
than 25% of the total cost is
local products
Do we need to apply a
geographic preference
to buy local food?
Are you applying a geographic preference for
Washington grown food? (WGF)
$150,000 or more
Formal
Yes, WGF
Less than
$150,000
$75,000 or more
No, not
WGF
Less than
$75,000
Informal
Formal
Informal
Informal Procurement
• Write down your product
needs and specifications
• Send to at least 3
qualified vendors
• Document outreach and
responses
• Select a vendor and
make an agreement
Informal Procurement
• Build your knowledge/contacts for farmers
and vendors who can supply local products
–
–
–
–
Letter to farms
Review county, regional farm guides
Visit farmers markets or wholesale markets
Learn about food hubs and local distributors
• Consider procurement requests for seasonal
produce, or special events
• Identify and plan for products available in
specific seasons.
Buying WA Grown Food
BEFORE YOU START THE PROCUREMENT PROCESS:
1. Forecasting: Identify the products and quantities you
will be purchasing, and estimate the total cost of the
purchase.
2. Depending on dollar amount, determine whether to use
formal or informal procurement method.
3. Plan your procurement procedure.
4. Define “local.”
5. Determine how you will apply geographic preference.
6. Where appropriate, adapt school policies.
Planning for Farm to School
• Seasonal Fresh Produce
• September/October/November
• Review menus for breakfast, lunch,
Fresh Fruit & Vegetable Program, special events
–
–
–
–
Seasonal interest and availability
What events do you want to participate in/host?
Ingredient substitution
Recipe development
• Seasonal Events
– Taste Washington Day
– October – National Farm to School Month
– Eat Local for Thanksgiving
Planning for Farm to School
www.wafarmtoschool.org
Identify WA foods that work for you
Identify WA foods that work for you
Quantities, Cost Estimates and
Specifications
• Based on:
– Enrollment and meals served
– Menus
– Goals for local products
• Estimate costs and determine whether
formal or informal
• Write clear specifications for your product
needs
Buying WA Grown Food
PUTTING TOGETHER THE PROCUREMENT REQUEST
7. Communicate your intent to apply a geographic preference and
your definition of “local.”
8. Define and communicate your evaluation criteria
9. Set vendor qualifications.
10. Write specifications to clearly state what products you want, the
level of processing you require, etc.
11. State preferences, and how they will be weighted in the evaluation
process.
12. Develop and commit to a plan for reviewing and selecting the
successful vendor.
Model Geographic Preference Language
“Local” defined as Washington Grown Food
1. Applying a geographic preference for Washington grown products for school food
procurement [in Washington State].
a. This school district (“District”) or school food authority (“SFA”) desires to serve
Washington grown products to its students.
b. Under federal law, this District [or “this SFA”], as the purchasing institution, has the
authority not only to apply a “local” geographic preference to minimally processed
foods, but also to determine what is “local” for the purposes of United States
Department of Agriculture (USDA) programs such as the National School Lunch
Program, the School Breakfast Program, the Fresh Fruit & Vegetable Program, the
Special Milk Program, the Child and Adult Care Food Program, the Summer Food
Service Program, and the Department of Defense Fresh Program.
c. This district [or “This SFA”] defines “locally grown products” as “Washington grown,”
as defined under Local Farms – Healthy Kids Act section 6 (Revised Code of
Washington section 28A.335.190). That definition states, “grown and packed or
processed in Washington.” This district [or “This SFA”] will apply applicable federal
procurement procedures.
d. As required under federal law, this district [or “this SFA”] will provide a price
percentage preference of [XX] % [or insert other “point” or “credit” calculation system ]
during evaluation of bids to “locally grown products” purchased for school food
procurement, as defined under this geographic preference.
e. Pursuant to USDA regulations, the geographic preference in this section is applied
only to “minimally processed” agricultural products that retain their inherent character.
Communicate Evaluation Criteria
• Product specifications, price, vendor qualifications, and preferences
EVALUATION OF SOLICITATION: Award will be made to the lowest responsible
contractor, after application of the geographic preference. The lowest responsible
contractor will be determined based on an evaluation of the products available,
price, delivery timelines and evaluation criteria shown hereafter. Such
determination will, of necessity, require judgmental evaluations by district
representatives. The decision resulting from the evaluation process as to which
product best meets the needs of various programs remains the sole responsibility
of the district and is final.
Evaluation Criteria
• Product variety available for distribution.
• Price per pound and number of servings per case.
• Quality of the products offered.
• Preference points earned for Washington-sourced product
•Ability to meet delivery schedule and service history in general.
• Agreeable and reliable billing procedures.
Product Specifications
• Product variety available
for distribution.
• Quality of the products
offered.
• Size of produce or
number of pieces per
case.
• Price - per pound and/or
case count.
Product Specifications
• Average number of days from harvest to delivery, or from
(minimal) processing to delivery, in the case of products that
are minimally processed in a way that may allow the product to
degrade over time
• Freshness and traceability
– Identified Each shipping box/case to have farm name on it
– Location Name of town, city or county where the harvesting was done
– TraceableName of farm, location of farm, date of harvest, and date
shipment was received from farmer
• Refrigeration of fresh produce from harvest or minimal
processing to delivery or a requirement that it be unrefrigerated
for no more than [xx] hours
Product Specifications
• Presence or absence of
individual produce stickers or
wax coatings
• Level of processing needed
for specific products
• Additives or preservatives
Product Specifications
for Food Safety
• Food safety and good agricultural practice
assurances
may choose to require an acceptable
response to a farm-based food safety
questionnaire or evidence of GAPs or
other voluntary food safety certification.
• Commitment to host a farm visit by school
district nutrition services representative to
review farm practices
• WSDA (or other) food processing license
if providing minimally-processed produce
items or other processed products
Buying WA Grown Food
IMPLEMENTING THE PROCUREMENT PROCESS
13. Adequately publicize the procurement opportunity
14. Fairly evaluate based on the vendor qualifications, specifications
and preferences in your procurement request and award the
contract to the selected vendor.
15. Execute a contract that matches your procurement specifications
and preferences.
16. Manage the procurement. Keep documentation, monitor service,
product quality, and price. Determine and communicate the
compliance with the agreement you’ve made.
Get the word out to vendors
• Consider how to reach vendors you’d like to
invite to submit a bid, proposal or quote
– Prime vendors
– Category vendors
– Farms, farm cooperatives, or other small food
businesses
• WSDA may be able to help identify ways to
reach vendors
– Ex: Agriculture/food Listservs, Foodhub, Puget
Sound Food Network, Puget Sound Fresh, WSDA
databases of interested farms and processors
Evaluate, Award and Contract
…based on the criteria,
qualifications, specifications
and preferences you defined
in your procurement request
Manage the Procurement
• Keep documentation.
• Monitor service, product
quality, and price.
• Determine and
communicate compliance
with the agreement you’ve
made.
What else is in the guide?
Tips, ideas and tools that will help schools use and buy
more locally-grown and raised foods, including:
• seasonal menu planning information
• product specification and vendor qualification
information
• on-farm food safety and kitchen food handling
resources
• district-level policy examples for adapting nutrition and
wellness policies to include farm to school.
Anything else?
www.wafarmtoschool.org
Help Us Improve Our Services
Contact us with your questions, ideas,
recipes, sample documents, etc.
Tricia Kovacs
Office of Compliance and Outreach
WA State Department of Agriculture
[email protected]
206-256-6150